Economic Inequality and Growth

Income and wealth inequality are natural and useful in a market economy. This fact is often overlooked or even negated in debates on the design of the welfare state in Germany. This is a serious mistake. The growth and innovation potential of an economy is not exploited. The lack of social dynamism and the narrative of an unjust society can contribute to greater social division. Germany could tolerate more inequality, provided it arises for the right reasons.

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